Term
|
Definition
The process by which companies create value for customers and build strong relationships to capture value from customers in return.
In short: Developing and maintaining relationships
Long term relationship = Brand Loyalty |
|
|
Term
|
Definition
Humans have a tendency to give inanimate objects human characteristics. (personification)
Breeds the idea, concept that you don't just buy the product, you communicate with the product, you get a service as well.
The brand, product becomes the other half of a relationship, If the relationship is long term, the profits for the company will be good |
|
|
Term
|
Definition
| It is 10x's more expensive to get a new customer than to retain an existing one. |
|
|
Term
The Marketing Process
(First Four Stages) |
|
Definition
Under one's control:Purpose: To create value FOR customers and build customer relationships
1. Understand the customer marketplace, needs, and wants
2. Design a customer driven market strategy
3. Construct a marketing program that delivers superior value
4. Build profitable relationships and build customer delight |
|
|
Term
The marketing Process
(Final Step) |
|
Definition
Out of marketers' control
Purpose: Capture Value FROM customers
5. Capture value from Customers to create profits and customer quality.
Reap what you sow. |
|
|
Term
|
Definition
State of "felt" Deprivation
Why felt?
You can feel deprivation when it isn't really there,
iphone example, in a consumer culture a want often becomes a need
Physical: Food, shelter
Social: Belonging, acceptance
Individual: Knowledge, self expression |
|
|
Term
|
Definition
| The form needs take as they shaped by culture and individual personality |
|
|
Term
|
Definition
| Wants backed by buying power |
|
|
Term
|
Definition
| Some combination of a product, experience, service, or information offered to a market to satisfy a need or want. |
|
|
Term
|
Definition
Focusing on only existing wants, and losing sight of underlying consumer needs
The customer is the victim here:
Example: Buying a car, the need is some sort of transportation, end up with a car that was bought for the image
The image the product projects explains a consumer's buying behavior more than the product itself.
A cigar is rarely a cigar, original quote: "Sometimes a cigar is just a cigar" |
|
|
Term
| Utilitarian function vs. Hedonic Function |
|
Definition
|
|
Term
|
Definition
| The set of actual and potential buyers of a product |
|
|
Term
|
Definition
Marketing system is an open system and every change in society matters
Consists of all the parties, (suppliers, company, competitors, intermediaries and end users) involved in the system Which is affected by enviornmental factors |
|
|
Term
| parties of a marketing system |
|
Definition
Suppliers
Companies
Competitors
Intermediaries
End Users |
|
|
Term
| Environmental factors which affect a market system. |
|
Definition
Marketing system is an open system and every change in society matters
Demographic
Economic
Physical
Technological
Political-legal
Socio-Cultural |
|
|
Term
|
Definition
"What customers will we serve, and how will be best serve these customers?"
The art and the science of choosing target markets, and building profitable relationships with them
Marketing is a creative driven industry:
How do we make people want to buy things, how do we make people believe it is in their best interest
Marketing Research the statistics, analysis, not reinventing the wheel and analyzing what works and does is the science.
Nothing in marketing is an accident |
|
|
Term
|
Definition
Refers to dividing the markets into segments of customers
Example: Bananna Republic, Gap, and Old Navy, all the same company but each segment targets a different market. |
|
|
Term
|
Definition
| Choosing which segments to go after |
|
|
Term
|
Definition
Is marketing to reduce demand temporarily or permanently, the aim is not to destroy the demand but to shift it.
Example: Cruise ships are are trying to target a younger audience in order to build brand loyalty sooner.
They are taking the emphasis off of easy relaxing vacation for Senior Citizens and shifting it to "Party on the seas!"
The concept is very commonly used in the tourism industry |
|
|
Term
|
Definition
| The set of benefits or values a company promises to deliver to customers to satisfy their needs. |
|
|
Term
Marketing Management Orientation
(5 parts) |
|
Definition
Production concept
Product Concept
Selling Concept
Marketing Concept
Societal Concept |
|
|
Term
|
Definition
The idea that customers will favor products that are available or highly affordable
Example: Lenovo risk of myopia due to internal forcus? |
|
|
Term
|
Definition
The idea that customers will favor products that offer the most quality, performance, and features
Problem: Sometimes customers need new products/ideas |
|
|
Term
|
Definition
The idea that consumers will not buy enough of the firm's products unless it undertakes a large scale selling and promotional effort
Example:
Buy one get one free, allows the company to gain short term sales (looks great on a quarterly report)
Focus is on promotion and general price reduction, and the belief that consumers are driven by price
Opposite Example:
Tiffanys, never has sales, never has promotions. It would destroy their brand. |
|
|
Term
|
Definition
| The idea that achieving organizational goals depends on knowing the needs and wants of the target markets and delivering the desired satisfaction better than the competitors. |
|
|
Term
| Market Management Orientation |
|
Definition
selling concept vs marketing concept
Triangle? |
|
|
Term
| Societal marketing Concept |
|
Definition
The idea that the company should make good marketing decisions by considering consumer wants the company's requirements and consumer's long term interests and society long term interests.
All companies want to show how environmentally friendly and socially responsible they are.
Going green and charities. |
|
|
Term
|
Definition
Summarizes the value of the entire stream of purchases that the customer would make over a lifetime of patronage.
Developed by a UConn Prof. |
|
|
Term
|
Definition
| The total combined customer lifetime values of all the company's customers |
|
|
Term
| What is marketing, pulling it all together, summarize flow chart |
|
Definition
|
|
Term
|
Definition
Part of Step 2 in the marketing process (design a strategic market plan)
The process of developing a strategic fit between the organization's goals and capabilities and its changing market opportunities
Purpose: Find ways in which the company can best use its strength to take advantage of attractive opportunities in the environment, specifically in the marketplace. |
|
|
Term
| Steps in the strategic planning process, at the corporate level |
|
Definition
1. Defining the company mission
2. Setting company objectives and goals
3. Discussing the business portfolio |
|
|
Term
| Steps in strategic planning process at the business unit, product and market level |
|
Definition
| Planning marketing and other functional strategies. |
|
|
Term
|
Definition
Describes the company's purpose
Example:
Amazon.com: We sell books, Cd's toys, consumer electronics, hardware and housewares and other products |
|
|
Term
| Market-oriented mission statement |
|
Definition
Defines the business in terms of satisfying basic customer needs.
Example: Amazon.com: We make the internet experience fast, easy, and enjoyable -we're the place where you can find and discover anything you want to buy online. |
|
|
Term
|
Definition
Collection of businesses and products that make up the company
Needs to reflect the real thing
Works of the pasts
Strengths, weaknesses
Products
Tasks
Lessons learned |
|
|
Term
|
Definition
Collection of businesses and products that make up the company
Needs to reflect the real thing
Works of the pasts
Strengths, weaknesses
Products
Tasks
Lessons learned |
|
|
Term
|
Definition
The process by which management evaluates the products, and businesses making up the company
Always up to date on your portfolio, set your goals and objectives with portfolio analysis |
|
|
Term
| Example of a company with a large, complex portfolio |
|
Definition
|
|
Term
| An "okay" example of a company without a portfolio because they only sell one thing |
|
Definition
| Airlines. (kinda), regional is a better example. |
|
|
Term
| Analyzing the current business portfolio |
|
Definition
1. Identify key businesses (strategic business units, or "sbus") that make up the company
2. Assess the attractiveness of each SBU
3. Decide how much support each SBU deserves |
|
|
Term
| Examples of a strategic Business unit (SBU) |
|
Definition
| Can be a company division, a product line within a division or a single product or brand. |
|
|
Term
|
Definition
Matrix that compares market growth and market share of products by labeling them a
1. Cash cow
2. Star,
3. dog
4. question mark
The point is where they fall on the matrix
This will determine how heavily the product is marketed.
A cash cow is heavily marketed, where a dog is not. |
|
|
Term
|
Definition
Market growth is low, market share is high. You are a leader in the industry and do not have to do much to fight the competition.
(sony televisions)
You market it, so you can keep milking your cow |
|
|
Term
|
Definition
| Market growth is high, but market share is low, you have to keep marketing and investing to fight off the competition, play station 3, the gamer industry continues to develop |
|
|
Term
|
Definition
Low growth rate, low market share: You are not the lead seller of a product, and the market as a whole is in decline.
Sony Cameras. Cheap, non complex digital cameras. The market as a whole is disappearing and they cannot compete with NIKON. |
|
|
Term
|
Definition
It is a gamble, the relative market share is low (usually for you and your competitors) but the market growth rate is high (usually because it is a new market) You are entering the market with a new product
3D television, success is unsure |
|
|
Term
| Product market expansion grid |
|
Definition
A grid that helps determine how a company can grow or downsize their products
Four options:
Market penetration
Product Development
Market Development
Diversification |
|
|
Term
| Market Penetration: Product Market Expansion Grid |
|
Definition
Existing market, and existing product. Increase sales without changing the product
Crocs offering colors, or Redbull offering Diet Redbull |
|
|
Term
| Market Development: Market Expansion Grid |
|
Definition
Existing product, new market
Attracting new segments, ie. seniors to buy the product, marketing redbull to seniors |
|
|
Term
| Product Development: Marketing expansion Grid |
|
Definition
| Existing Market, new products: Redbull Cola |
|
|
Term
| Diversification: marketing Expansion Grid |
|
Definition
| New product, New market, entering a different product category: RedBull Sports teams |
|
|
Term
|
Definition
The reduction of a business portfolio by eliminating products or business units that are not profitable or no longer fit the company's overall strategy
Example: Sony will stop manufacturing cheap digital cameras, its a dying product and market for them. |
|
|
Term
|
Definition
The set of controllable, tactical marketing tools, "building stones"
Important: it is controllable by the firm:
Product
Price
Place
Promotion
All the firm blends to produce the response that it wants in the target market. |
|
|
Term
| Product: Break down of the four p's |
|
Definition
Variety
quality
design
features
brand names
packaging
services
Example: Packaging is a huge part of the product of alcohol and perfume |
|
|
Term
| Price: Break down of the four P's |
|
Definition
List price
Discounts
allowances
payment periods
credit terms
Example: a product that can only be marketed based on price
Jewelery, Tiffanys in particular diamonds are the same everywhere but Tiffanys appeals to those who can afford the most expensive luxury. |
|
|
Term
| Promotion: Break down of the four P's |
|
Definition
Advertising
Personal selling
Sales promotion
Public Relations
Product success that is based on advertising alone: Deoderants, batteries
when products are all the same but customers buy based on product image
Energizer bunny, Bow chica wow wow.. |
|
|
Term
| Place: Break down of the four P's |
|
Definition
Channels
Coverage
Assortments
Locations
Inventory
Transportation
Logistics
Cannot buy Chanel No. 5 at Walmart. It would destroy their image. |
|
|
Term
|
Definition
Four C's match with four P's
Customer Solution: Product
Customer Cost: Price
Convenience: Place
Communication: Promotion |
|
|
Term
|
Definition
Strengths
Weaknesses
Opportunities
Threats
See Slide with Grid comparing internal, external and positive negative |
|
|
Term
|
Definition
| The development of strategic and marketing plans to achieve company objectives |
|
|
Term
|
Definition
| Consists of specific strategies for target markets, positing, the market mix, and marketing expenditure levels |
|
|
Term
|
Definition
Like an abstract of a paper, sums up the main points
Current Marketing Situation: Talk about how much they spend, how many visits they have from the websites
SWOT: Strengths, weaknesses, opportunities and Threats
Objectives and issues: Increase the traffic on the website by 15%. A goal that is explained in an explicit way.
Action Program: How you are going to achieve your goal, link to FB page, blogs ect.
Budgets: Who is going to do this and for how much?
Controls: How do we know that the web traffic was increased by 15%... Some way to measure it. |
|
|
Term
| Return on marketing investment (ROI) |
|
Definition
| The net return from a marketing investment divided by the cost of the marketing investment |
|
|
Term
| Old ROI thinking vs new ROI thinking |
|
Definition
Example Superbowl ads, was it worth the price?
Old thinking believed that after a popular ad, sales and customer base should increase almost immediately. If it didn't then marketing was cut.
Problem: How do you know what the good time to measure is? You might see a Superbowl ad in the fall and need new sneakers in the Spring
As marketing science was further explored they discovered the "carry over effect"
There might be an increase in sales in the distant future depending on timing and customer needs
Advertising helps maintain brand image
Carry over effect |
|
|
Term
|
Definition
Brand awareness
Sales
Market Share |
|
|
Term
|
Definition
Brand awareness
Sales
Market Share |
|
|
Term
| Customer centered Measures |
|
Definition
Customer acquisition
Customer retention
Customer lifetime value |
|
|
Term
|
Definition
| Includes the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with customers |
|
|
Term
|
Definition
| Consists of the actors close to the company that affect its ability to serve its customers the company, suppliers, marketing intermediaries, customer markets, competitors, and publics |
|
|
Term
| actors in company environment |
|
Definition
| Suppliers, the company, competitors, intermediaries, publics, end users |
|
|
Term
|
Definition
Demographic
Economic
Political-legal
Technological
Socio-cultural
Physical |
|
|
Term
|
Definition
Study of human populations in terms of size, density, location, gender, age, race, occupation, and other statistics
Important bc it involves people and people make up markets
demographic trends include family structure, age, geographic population shifts, educational characteristics, and population diversity |
|
|
Term
| Generational : Demographic discuss trends |
|
Definition
Important in segmenting people by lifestyle of life state (not necessarily age)
Baby Boomers, generation x, generation y,
Spending power is driven by age, culture, norms, debt |
|
|
Term
| Economic (discuss trends) |
|
Definition
| There is a new middle class that can afford to buy cars, and other expensive goods. They expect quality and a fair price though. |
|
|
Term
| Natural Environment: Discuss trends |
|
Definition
| involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities |
|
|
Term
| Technological environment: Discuss trends |
|
Definition
Most dramatic force in changing the marketplace
Creates new products and opportunities
Safety of new product is always a concern |
|
|
Term
| Political environment: Discuss trends |
|
Definition
Consists of laws, government agencies, and pressure groups that influence or limit various organizations and individuals in a given society
Legislation in business:
Increased legislation
Changing government agency enforcement
Increased emphasis on ethics
socially responsible behavior
Cause related marketing |
|
|
Term
| Cultural Enviornment: Discuss trends |
|
Definition
| Consists of institutions and other forces that affect a society's basic values, perceptions, and behaviors |
|
|
Term
|
Definition
Markets don't consist of homogeneous groups
Hetereogenous groups = Segments
Marketing to lifestyle: footwear industry |
|
|
Term
| The target Marketing Process (four steps) |
|
Definition
1. Identify markets with unfulfilled needs
2. Determine Market Segmentation
3. Select Market to target
4. Position through marketing strategies |
|
|
Term
| The target market process: step one |
|
Definition
Identify markets with unfulfilled needs:
Isolate consumers with similar needs, wants |
|
|
Term
| The target market process: step two |
|
Definition
Determine Market Segmentation:
Dividing market into distinct groups that have common needs and will respond similarily to marketing action |
|
|
Term
| The target market process: step 3 |
|
Definition
Select a market to target:
Determine which and how many segments to enter, and which segments offer the most potential |
|
|
Term
| The target market process: Step 4 |
|
Definition
Position through marketing strategies:
The art and science of fitting the product or service to one or more segments of the broad market in such a way to set it meaningfully apart from the competition |
|
|
Term
| Market segmentation example: Grupo Modelo Beer |
|
Definition
| Grupo Modelo shows how they compete in a variety of segments with a variety of products, varying the marketing mix with each. The different types of beer offered by Grupo Modelo appeal to a different sets of needs, such as tastes, lifestyle, image, and even waistlines. |
|
|
Term
| Two Broad Catagories for ways to segment markets |
|
Definition
1. Customer Characteristics
2.Buying situation |
|
|
Term
|
Definition
Customer Characteristics Include:
Geographic location
Demographic (gender, age, race, education)
Socioecnomic: income, education and occupation
Psychographic: personality lifestyles or values |
|
|
Term
|
Definition
Behavioral Segmentation: level of involvement with and purchasing behavior
Outlet types: based on type of store where product is sold
Benefit: divides markets based on the specific benefits or outcomes consumers want from a product or service
Awareness: based on product knowledge of the consumer
Usage: segmentation that is based on classification of product users, how much or how little they utlize the product |
|
|
Term
| Psychographic Segmentation: More |
|
Definition
Diving the market based on personality, values, lifestyle
Vals lifestyle segmentation
Eight lifestyles with distinctive attitudes, behaviors and decision making patterns
Combined with estimate of the resources on which consumer can draw
The determination of lifestyle is based on an analysis of the activities, interests, and opinions (AIOs) of consumers.
For example, the target market for the Hummer is described as “highly adventurist, entrepreneurial, and free-spirited achievers.” (not as much anymore) |
|
|
Term
| PRIZM clusters developed by Claritas |
|
Definition
Claritas provides demographic and psychographic profiles of geographic areas as small as census track, block group, or zip code +4.
Most comprehensive segmentation used in the industry right now
See last slide of class 3 |
|
|
Term
|
Definition
Fresh and deep insights into customer's needs and wants
Difficult to obtain
Not obvious
Customers are unsure of their own behavior
Not derived from more information but more effective use of information previously gathered |
|
|
Term
| Marketers Obtain info by: |
|
Definition
Internal Data: Big Y cards
Marketing intelligence
Marketing Research |
|
|
Term
|
Definition
Electronic collections of consumer and market information obtained from data sources within the company
Pizza Hut’s database is highlighted in the text. They have:
Detailed customer data on 40 million U.S. households, gleaned from phone orders, online orders, and point-of-sale transactions at its more than 7,500 restaurants.
The company can organize the data by order details to enhance customer relationships such as the Pizza Hut designed VIP (Very Into Pizza) program to retain its best customers. It invites these customers to join the VIP program for $14.95 and receive a free large pizza. Then, for every two pizzas ordered each month, VIP customers automatically earn a coupon for another free large pizza. |
|
|
Term
|
Definition
The systematic collection and analysis of publically available information about consumers, competitors and developments in the market place
This Web link brings you to AC Nielsen’s homepage. This includes not just their online division but their entire company. It is very interesting to explore the area called trends an insights. |
|
|
Term
|
Definition
| Systematic design, collection, analysis, and reporting of data relevant to a specific marketing situation facing an organization |
|
|
Term
| Market Research Process (four steps) |
|
Definition
1. define problem and research objectives
2. Developing the research plan for collecting information
3. Implementing the research plan - collecting and analyzing data
4. Interpreting and reporting the findings |
|
|
Term
| Step One of Developing Marketing Info |
|
Definition
Defining the problem and research objectives:
Three ways to dive deeper
Exploratory- gather preliminary info that will help define the problem and suggest a hypothesis
Descriptive: Describes things
Casual: test hypothesis about cause and effect relationships |
|
|
Term
|
Definition
| Consists of information that already exists somewhere, it was originally collected for a another purpose |
|
|
Term
|
Definition
| Consist of information gathered for the special research plan |
|
|
Term
|
Definition
| Involves gathering primary data by observing relevant people, actions and situations |
|
|
Term
|
Definition
| Involves sending trained observers to watch and interact with consumers in their natural enviornment |
|
|
Term
|
Definition
Most widely used method and is best for descriptive information -knowledge, attitudes, preferences, and buying behavior
Flexible
people can be unable or unwilling to answer
gives misleading or pleasing answers
privacy concerns
Money and happiness are related but family causes both
Study this: Experimental Research. Only when you scientifically control for various variables than you can find causation (x causes y) |
|
|
Term
|
Definition
| is best for gathering causal information—cause-and-effect relationships |
|
|
Term
|
Definition
| is a segment of the population selected for marketing research to represent the population as a whole |
|
|
Term
Marketing Research
Research Instruments |
|
Definition
Through MRI scans scientists have learned that message trigger certain areas in the brain. From your book:
Bathroom cleaner users watched a commercial for Unilever’s Vim line of home cleaners, positioned as a product that “deals with the toughest dirt. In all, the ad stirred up very strong, mostly negative emotions. Follow-up interviews showed that consumers actually hated the ad. How did researchers measure viewers’ response to such emotionally charged advertising? Six electrodes attached to each person’s head after which they were asked how they felt about the ad. |
|
|
Term
| Customer Relationship Management (CRM) |
|
Definition
| CRM consists of sophisticated software and analytical tools that integrate customer information from all sources, analyze it in depth, and apply the results to build stronger customer relationships |
|
|
